INTERNATIONAL BUSINESS MACHINES CORP (IBM) Factsheet

INTERNATIONAL BUSINESS MACHINES CORP (IBM) Stock Analysis

Analysis from 10-Q filed 2025-10-23. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 12.4%. FCF margin 18.7%. D/E 2.0x. Source: 10-Q filed 2025-10-23.

Metric Value Context
ROIC 12.4% Solid returns
FCF Margin 18.7% Strong cash generation
Debt/Equity 2.0x Elevated debt

ROIC 12.4% — Top 50% of sector peers. FCF margin 18.7% — Top 50%.

Explore INTERNATIONAL BUSINESS MACHINES CORP: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for IBM: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.


Profitability: INTERNATIONAL BUSINESS MACHINES CORP earns 12.4% ROIC, Top 50% in Technology

ROIC TTM 12.4%, sector median 5.0%, Top 50%. DuPont: NOPAT margin 16.7% × asset turnover 0.5x. Gross margin 58.4%. Operating margin 16.5%. Source: 10-Q filed 2025-10-23.

Metric IBM Rating Context
Return on Invested Capital (ROIC) 12.4% Good Above sector median of 5.0%
Return on Equity (ROE) 36.5% Excellent Efficient use of shareholder equity
Gross Margin 58.4% Excellent Strong pricing power
Operating Margin 16.5% Good Efficient operations

Cash Flow: INTERNATIONAL BUSINESS MACHINES CORP generates $12.9B FCF at 18.7% margin, positive NaN/8 quarters

FCF TTM $12.9B. FCF margin 18.7%, Top 50%. OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-23.

Metric IBM Rating Context
Free Cash Flow Margin 18.7% Good Excellent cash conversion
Free Cash Flow (TTM) $12.9B Good Positive cash generation
OCF/Net Income 1.3x Excellent High earnings quality
FCF Consistency (8Q) N/A Warning Variable cash flow

Balance Sheet: INTERNATIONAL BUSINESS MACHINES CORP at 2.0x leverage

Debt/Equity 2.0x. Total debt $66.4B, cash & investments $10.9B. Source: 10-Q filed 2025-10-23.

Metric IBM Rating Context
Debt to Equity 2.0x Warning Elevated leverage
Net Cash Position $-55.5B Warning Net debt position

Valuation: INTERNATIONAL BUSINESS MACHINES CORP trades at 21.1x earnings

P/E 21.1x. EV/Sales 4.0x. FCF yield 5.7%. Dividend yield 2.8%. Source: 10-Q filed 2025-10-23.

Metric IBM Rating Context
P/E Ratio 21.1x Adequate Premium valuation
EV/Sales 4.0x Good Growth premium priced in
FCF Yield 5.7% Good Attractive cash return
Dividend Yield 2.8% Adequate Growth focus over income

Capital Allocation: INTERNATIONAL BUSINESS MACHINES CORP returns 2.8% shareholder yield

Total shareholder yield 2.8% (div 2.8%). Capital returned $6.3B TTM. Source: 10-Q filed 2025-10-23.

Metric IBM Rating Context
Total Shareholder Yield 2.8% Adequate Dividend + buyback yield combined
Total Capital Returned (TTM) $6.3B Good Dividends + buybacks returned to shareholders

Sector Rankings

Metric Value Percentile vs Median
Return on Invested Capital (ROIC) 12.4% Top 50% 2.5x above
Free Cash Flow Margin 18.7% Top 50% 2.2x above
Gross Margin 58.4% Top 50% 1.1x above
Operating Margin 16.5% Top 25% 3.4x above
Return on Equity (ROE) 36.5% Top 25% 7.4x above
P/E Ratio 21.1x N/A -

Financial Scorecard

Metric IBM Rating Sector Context
Return on Invested Capital (ROIC) 12.4% Good Top 50% of sector (median: 5.0%)
Free Cash Flow Margin 18.7% Good Top 50% of sector (median: 8.6%)
Gross Margin 58.4% Excellent Top 50% of sector (median: 51.6%)
Debt to Equity Ratio 201.3% Warning High financial leverage
P/E Ratio (Price-to-Earnings) 21.1x Adequate Fair value
Free Cash Flow Yield 5.7% Good Solid cash yield

Frequently Asked Questions

Q: What is INTERNATIONAL BUSINESS MACHINES CORP's Return on Invested Capital (ROIC)?

INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a trailing twelve-month Return on Invested Capital (ROIC) of 12.4%. Sector median 5.0%. Source: 10-Q filed 2025-10-23.

Q: What is INTERNATIONAL BUSINESS MACHINES CORP's Free Cash Flow Margin?

INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a free cash flow margin of 18.7%, generating $12.9 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-23.

Q: What is INTERNATIONAL BUSINESS MACHINES CORP's P/E ratio and how does it compare to peers?

INTERNATIONAL BUSINESS MACHINES CORP (IBM) trades at a P/E ratio of 21.1x, which is above the sector median of N/A. EV/Sales 4.0x. FCF yield 5.7%. Source: 10-Q filed 2025-10-23.

Q: Does INTERNATIONAL BUSINESS MACHINES CORP pay a dividend?

INTERNATIONAL BUSINESS MACHINES CORP (IBM) currently pays a dividend yield of 2.8%. Total shareholder yield (dividend + buybacks) 2.8%. Source: 10-Q filed 2025-10-23.

Q: How much debt does INTERNATIONAL BUSINESS MACHINES CORP have?

INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a debt-to-equity ratio of 2.0x with total debt of $66.4 billion. Net debt $55.5 billion. Source: 10-Q filed 2025-10-23.

Q: What is INTERNATIONAL BUSINESS MACHINES CORP's revenue and earnings growth?

INTERNATIONAL BUSINESS MACHINES CORP (IBM) grew revenue by 9.7% year-over-year. EPS +93.6% YoY. Source: 10-Q filed 2025-10-23.

Q: How does INTERNATIONAL BUSINESS MACHINES CORP compare to competitors in Technology?

Compared to other companies in Technology, INTERNATIONAL BUSINESS MACHINES CORP (IBM) shows: ROIC 12.4%, sector median 5.0% (Top 50%). FCF margin 18.7%, sector median 8.6% (Top 50%). Gross margin 58.4%, 6.7pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with INTERNATIONAL BUSINESS MACHINES CORP?

Quantitative warning flags for INTERNATIONAL BUSINESS MACHINES CORP (IBM): 1) debt/equity 2.0x (above 1.5x threshold). Source: 10-Q filed 2025-10-23.


Data Source: Data sourced from 10-Q filed 2025-10-23. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.